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Japan’s Panasonic sees global car output improving this business year
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(Reuters) – Panasonic Holdings Corp, which makes batteries for Tesla and other automakers, said on Wednesday it expected global car production to recover this fiscal year, but predicted that the two-year long chip shortage would continue.
(Reuters) – Panasonic Holdings Corp, which makes batteries for Tesla and other automakers, said on Wednesday it expected global car production to recover this fiscal year, but predicted that the two-year long chip shortage would continue.
“We will be running our business as we consider risks of fluctuations on vehicle production,” said Masashi Nagayasu, CEO of the Japanese conglomerate’s automotive business, which makes in-car infotainment systems and other auto components and is separate from its battery business.
Speaking on the first day of Panasonic’s annual investor event, Nagayasu said Panasonic was not thinking about making cars.
Panasonic, which gets roughly 14% of its total revenue from the automotive unit, expects sales in the business to rise 19% in the fiscal year ending March 2023. It expects operating profit to rise by 16.6 billion yen.
The company said last month it expected no growth in profits this business year, due to component shortages caused by COVID-19 lockdowns in China and higher commodity costs following Russia’s invasion of Ukraine.
(This story corrects to clarify automotive business is separate from batteries business and to read ‘by 16.6 billion yen,’ not ‘nearly 17%,’ in paragraphs 2,4)
(Reporting by Satoshi Sugiyama in Tokyo; Editing by Himani Sarkar and Sam Holmes)
A chip shortage occurs when the demand for semiconductor chips exceeds supply, impacting various industries, especially automotive, as modern vehicles rely heavily on these components for functionality.
Operating profit is a company's earnings before interest and taxes, calculated by subtracting operating expenses from gross profit, indicating the efficiency of a company's core business operations.
Revenue growth refers to the increase in a company's sales over a specific period, usually expressed as a percentage, indicating the company's ability to expand its business and market share.
Automotive components are parts and systems that make up a vehicle, including engines, batteries, infotainment systems, and other essential elements that contribute to a vehicle's performance and functionality.
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